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Factors affecting SMEs growth: the case of the real estate valuation service industry

Author

Listed:
  • Agnieszka Ma³kowska

    (Cracow University of Economics, Poland)

  • Ma³gorzata Uhruska

    (Cracow University of Economics, Poland)

Abstract

Research background: Based on the literature, several ways of assessing the conduct of business and a number of factors influencing the growth and development of the companies can be identified. However, the diversity of business entities and their business environment raises the importance of considering the unique nature of the industry in the selection of performance measures. Our research focuses on real estate valuation firms that provide information and consulting services to real estate markets. Purpose of the article: As professional practice shows, there are different business models for property valuation. These businesses differ in their organisational and legal form and the type of valuations performed, the type of client served, or the scope of services provided. The main purpose of the research is to identify factors that significantly affect the development odds of valuation companies in Poland, especially the growth of income. Methods: The study was based on data collected from the survey of Polish real estate valuers. The analysis was conducted on a sample of 277 professionals who own valuation companies and were certified no later than the end of 2014. A quantitative analysis using a logistic regression model was conducted to identify the factors that influence the prospects for valuation business growth. Findings & value added: The research confirms the relationship between the way of conducting real estate valuation activities and its development chances. The most important factors are a spatial and substantive range of services, cooperation and employment, and clients' profile. Demographic characteristics were also found to be significant. Although the results presented here are based on data from the real estate valuation industry, their relevance is much broader. The findings provide a better understanding of the factors that influence the performance and success of SMEs, particularly in the information and consulting industry.

Suggested Citation

  • Agnieszka Ma³kowska & Ma³gorzata Uhruska, 2022. "Factors affecting SMEs growth: the case of the real estate valuation service industry," Oeconomia Copernicana, Institute of Economic Research, vol. 13(1), pages 79-108, March.
    • Handle: RePEc:pes:ieroec:v:13:y:2022:i:1:p:79-108
    DOI: 10.24136/oc.2022.003
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    Cited by:

    1. Cheng-Wen Lee & Chin-Chuan Wang & Hui-Hsin Hsu & Peiyi Kong, 2023. "The Assessment of Green Business Environments Using the Environmental–Economic Index: The Case of China," Sustainability, MDPI, vol. 15(23), pages 1-17, November.
    2. Ana León-Gómez & José Manuel Santos-Jaén & Daniel Ruiz-Palomo & Mercedes Palacios-Manzano, 2022. "Disentangling the impact of ICT adoption on SMEs performance: the mediating roles of corporate social responsibility and innovation," Oeconomia Copernicana, Institute of Economic Research, vol. 13(3), pages 831-866, September.
    3. Adam P. Balcerzak & Ilona Pietryka (ed.), 2023. "Contemporary Issues in Economy. Proceedings of the International Conference on Applied Economics: Entrepreneurship and Management," Books, Institute of Economic Research, edition 1, volume 12, number 32, August.

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    More about this item

    Keywords

    business growth factors; entrepreneurship; professional services; property valuation; small business performance; SME’s service businesses;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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